Notes to Accounts of Globe Enterprises (India) Ltd.

Mar 31, 2025

J Provisions and contingent liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are
determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present
obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a
provision is presented in the Statement of Profit and Loss net of any reimbursement. The unwinding of the discount is recognised as
finance cost. Expected future operating losses are not provided for.

Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are not recognised but are disclosed in the notes
where an inflow of economic benefits is probable.

K Leases: Right-of-use assets and Lease liabilities

i) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be
made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments
of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments
that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date
because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12
months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets
recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are
recognised as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating
leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease
term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the
lessee. Amounts due from lessees under finance leases are recorded as receivables at the Companyâs net investment in the leases. Finance
lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in
respect of the lease.

L Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of
three months or less, which are subject to an insignificant risk of changes in value. Cash and cash equivalents for the purpose of Statement
of Cash Flow comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months
or less.

M Earning per share

Basic earnings per share is computed by dividing the profit / (loss) for the period attributable to equity share holder by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) for the
period attributable to Equity Share holders and the weighted average number of shares outstanding during the year are adjusted for
effects of all dilutive potential equity shares.

N Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to
them and that the grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the years in which the Company
recognises as expenses the related costs for which the grants are intended to compensate or when performance obligations are met.

Government grants, whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets and
nonmonetary grants are recognised and disclosed as âdeferred incomeâ under non-current liability in the Balance Sheet and transferred to
the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this favourable interest is treated as a government grant.
The loan or assistance is initially recognised at fair value and the government grant is measured as the difference between proceeds
received and the fair value ofthe loan based on prevailing market interest rates and recognised to the income statement immediately on
fulfilment of the performance obligations. The loan is subsequently measured as per the accounting policy applicable to financial
liabilities.

O Segment Reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the companyâs Chief Operating Decision Maker (âCODMâ) to make
decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS 108 - Operating
Segments, the CODM evaluates the Companyâs performance and allocates resources based on an analysis of various performance
indicators by business segments and geographic segments.

P Cash flow statement

Cash flows are reported using the indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operating, investing and
financing activities of the Company are segregated based upon the available information.

Q Expenditure

Expenses are net of taxes recoverable, where applicable.

During the current year the Company has increased authorised share capital from existing Rs. 61,00,00,000/- (Rupees Sixty One Crore Only)
divided into 30,50,00,000 (Thirty crore fifty lakh only) Equity Shares of Rs. 2/- each to Rs. 91,00,00,000/- (Rupees Ninty one Crore Only)
divided into 45,50,00,000 (Forty five crore fifty lakh only) Equity Shares of Rs. 2/- each vide Special Resolution passed in the annual general
meeting held on September 30, 2024.

Note (b)

During the the previous year the Company has increased authorised share capital from existing Rs. 48,00,00,000/- (Rupees Forty-Eight Crore
Only) divided into 24,00,00,000 (Twenty Four Crore) Equity Shares of Rs. 2/- each to Rs. 61,00,00,000/- (Rupees Sixty one Crore Only)
divided into 30,50,00,000 (Thirty crore fifty lakh only) Equity Shares of Rs. 2/- each vide Special Resolution passed in the extra-ordinary
general meeting held on December 29, 2023.

Note (c)

During the current year the Company had issued 15,01,39,596 fully paid-up Equity Shares of face value of Rs. 2 each for cash at a price of Rs.
3 per Equity Share (including a premium of Rs. 1 per Equity Share) aggregating to Rs. 4,504.19 Lakhs on a rights basis to eligible equity
shareholders in the ratio of one Equity Share for every two fully paid-up Equity Share held on the record date, that is January 17, 2025. These
equity shares were allotted on February 13, 2025.The fresh allotment of equity shares through Rights Issue as stated above had resulted in an
increase of equity share capital by Rs.3,002.79 Lakhs and securities premium reserve by Rs. 1,501.40 Lakhs.

Note (d)

During the previous year the Company had issued 14,91,37,692 fully paid-up Equity Shares of face value of Rs. 2 each for cash at a price of
Rs. 3 per Equity Share (including a premium of Rs. 1 per Equity Share) aggregating to Rs. 4,474.13 Lakhs on a rights basis to eligible equity
shareholders in the ratio of one Equity Share for every one fully paid-up Equity Share held on the record date, that is February 23, 2024. These
equity shares were allotted on March 28, 2024.The fresh allotment of equity shares through Rights Issue as stated above had resulted in an
increase of equity share capital by Rs.2,982.75 Lakhs and securities premium reserve by Rs. 1,491.38 Lakhs.

(ii) Rights, preferences and restrictions attached to Equity shares

The Company has only one class of equity shares having a par value of Rs.2/- per share (PY Rs.2/- per share). Each shareholder of equity
shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive the remaining assets of the Company. The distribution will be in proportion to the number of
equity shares held by the shareholders. During the current year and previous year, comany has not declared or paid any dividend.

(i) Securities Premium

a) The securities premium received by the Company on issue of shares at premium. This balance will be utilised in accordance with the
provisions of Section 52 of the Act towards issuance of fully paid bonus shares, write-off of preliminary expenses, commission/discount
expenses on issue of shares/debentures, premium payable on redemption of redeemable preference shares/debentures and buy back of its own
shares/securities under Section 68 of the Act.

b) During the current year the Company had issued 15,01,39,596 fully paid-up Equity Shares of face value of Rs. 2 each at a price of Rs. 3 per
Equity Share (including a premium of Rs. 1 per Equity Share) aggregating to Rs. 4,504.19 Lakhs on a rights basis to eligible equity
shareholders in the ratio of one Equity Share for every two fully paid-up Equity Share held on the record date, that is January 17, 2025. These
equity shares were allotted on February 13, 2025.

The fresh allotment of equity shares through Rights Issue as stated above had resulted in an increase of equity share capital by Rs.3,002.79
Lakhs and securities premium reserve by Rs. 1,501.40 Lakhs.

c) During the previous year the Company had issued 14,91,37,692 fully paid-up Equity Shares of face value of Rs. 2 each for cash at a price of
Rs. 3 per Equity Share (including a premium of Rs. 1 per Equity Share) aggregating to Rs. 4,474.13 Lakhs on a rights basis to eligible equity
shareholders in the ratio of one Equity Share for every one fully paid-up Equity Share held on the record date, that is February 23, 2024. These
equity shares were allotted on March 28, 2024.

The fresh allotment of equity shares through Rights Issue as stated above had resulted in an increase of equity share capital by Rs.2,982.75
Lakhs and securities premium reserve by Rs. 1,491.38 Lakhs.

d) During the current year, expenses incurred in connection with the Rights Issue amounting to ?228.52 lakhs have been adjusted against the
Securities Premium Account in accordance with applicable provisions

(ii) Retained Earnings

The amount that can be distributed by the Company as dividend to its equity shareholders is determined based on the financial position and
dividend policy of the Company and in compliance with the requirements of the Act.

The Company had issued 15,01,39,596 fully paid-up Equity Shares of face value of Rs. 2 each for cash at a price of Rs. 3 per Equity Share
(including a premium of Rs. 1 per Equity Share) aggregating to Rs. 4,504.19 Lakhs on a rights basis to eligible equity shareholders in the ratio
of one Equity Share for every two fully paid-up Equity Share held on the record date, that is January 17, 2025. These equity shares were
allotted on Feb 13, 2025.

Pursuant to Ind AS - 33, Earnings Per Share, the Basic and Diluted earnings per share for the previous year have been restated for the bonus
element in respect of the Rights issue of shares made during financial year ended March 31, 2025.

Note : 2

The Company had issued 14,91,37,692 fully paid-up Equity Shares of face value of Rs. 2 each for cash at a price of Rs. 3 per Equity Share
(including a premium of Rs. 1 per Equity Share) aggregating to Rs. 4,474.13 Lakhs on a rights basis to eligible equity shareholders in the ratio
of one Equity Share for every one fully paid-up Equity Share held on the record date, that is February 23, 2024. These equity shares were
allotted on March 28, 2024.

32 Financial Instruments
(i) Capital Management

For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the
equity holders of the Company. The primary objective of the Companyâs capital management is to ensure that it maintains an efficient capital
structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements to
optimise return to our shareholders through continuing growth. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The funding requirements are met through a mixture of equity,
internal fund generation and other non-current borrowings. The Company monitors capital structure using a gearing ratio, which is net debt
divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings add capital creditors and less
cash and short-term deposits (including other bank balance).

(a) Investments in subsidiaries have not been presented in this statement.

(b) Carrying amounts of current financial assets and liabilities as at the end of the each year presented approximate the fair value because of their
current nature. Difference between carrying amounts and fair values of other non current financial assets and liabilities subsequently measured at
amortised cost is not ''significant in each of the year presented.

For description of the Companyâs financial instrument risks, including risk management objectives and policies is given in, Note 33.The methods
used to measure financial assets and liabilities reported at fair value are described in below Note.

(iii) Fair Value Hierarchy

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most
advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly
observable or estimated using a valuation technique.

Financial assets and financial liabilities measured at fair value in the Balance Sheet are grouped into three levels of a fair value hierarchy. The
three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: unobservable inputs for the asset or liability.

(b) Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable
approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the
values that would eventually be received or settled.

33 Financial Risk Management and Objective

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs board of directors has overall responsibility for the establishment and
oversight of the Companyâs risk management framework. The Companyâs risk management policies are established to identify and analyse the risks faced by
the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Companyâs activities.

The Company is primarily exposed to risks resulting from fluctuation in market risk, credit risk and liquidity risk, which may adversely impact the fair value
of its financial instruments.

(a) Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks
and financial institutions, foreign exchange transactions and other financial instruments. The carrying amounts of financial assets represent the maximum
credit risk exposure.

Credit risk management considers available reasonable and supportive forward-looking information including indicators like external credit rating (as far as
available), macro-economic information (such as regulatory changes, government directives, market interest rate).Credit risk encompasses both, the direct
risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and
creditworthiness of counter parties on continuous basis with appropriate approval mechanism for sanction of credit limits

(i) Trade receivables

The Company primarily collects consideration from export of goods and services. Consequently, a significant portion of trade receivables arises from
domestic customers, and the Company is subject to a limited credit risk exposure in this regard.

The credit risk on trade receivables is assessed to be very low, owing to the Company''s prudent customer selection process, continuous monitoring of
receivables, and a strong track record of collections. Furthermore, the Company has a well-established credit control policy in place to evaluate the
creditworthiness of customers, which significantly reduces the likelihood of default.

The Company applies the Expected Credit Loss (ECL) model for assessing impairment on trade receivables, which involves a combination of historical loss
experience, current financial position of individual customers, and forward-looking information at each reporting period. Based on this assessment, the risk of
material loss from trade receivables is considered remote.

The Company does not hold any collateral against trade receivables. However, the credit risk is further mitigated due to the low concentration of receivables,
with a broad and diversified customer base across multiple industries and geographies, thereby reducing the dependence on any single customer or market.

As at the reporting date, the maximum exposure to credit risk is the carrying amount of each class of financial assets disclosed in Note 9 of the financial
statements.

(ii) Cash and cash equivalents, bank deposits and Security Deposits

The Company maintains its cash and cash equivalents and bank deposits with reputed banks and financial institutions. The credit risk on these instruments is
limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The Company monitors the credit rating
of the counterparties on regular basis. These instruments carry very minimal credit risk based on the financial position of parties and Companyâs historical
experience of dealing with the parties.

(b) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected
by market risk include foreign currency receivables, deposits, investments in mutual funds.

Market risk exposures are measured using sensitivity analysis. There has been no change in the measurement and management of the Companyâs exposure to
market risks.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Exposure
to foreign currency risk is very limited. The Company has taken hedging instruments by way of forward contracts to hedge the foreign currency exposure in
respect of trade payables are concerned, the Companyâs unhedged foreign currency exposure on account of foreign currency denominated payable as at
March 31, 2025 is as follow:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.
The Company manages its interest rate risk by having a mixed portfolio of fixed and variable rate loans and borrowings.

The sensitivity analysis have been carried out based on the exposure to interest rates for instruments not hedged against interest rate fluctuation at the end of
the reporting period. The said analysis has been carried out on the amount of floating rate long term liabilities outstanding at the end of the reporting period.
A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

In case of fluctuation in interest rates by 50 basis points on the exposure on borrowing of Rs. 13,702.39 Lakhs as on March 31, 2025 (Rs.8,129.18 Lakhs as
on March 31, 2024) and if all other variables were held constant, the Company''s profit or loss for the year would increase or decrease as follows :

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity
to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Companyâs reputation.

During the year, the Company has been regular in repayment of principal and interest on borrowings on or before due dates. The Company did not have
defaults of principal and interest as on reporting date.

Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate liquidity risk management
framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows, and by matching
the maturity profiles of financial assets and liabilities.

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (âCODMâ).
The CODM is the Chief Executive Officer of the Company, who assesses the financial performance and position of the Company and makes
strategic decisions. The Company''s activities during the year revolve around Textile Manufacturing and Trading.

Considering the nature of Company''s business, as well as based on reviews by CODM to make decisions about resource allocation and
performance measurement, there is only one reportable segment in accordance with the requirements of Ind AS - 108 - ââOperating Segmentsââ,
prescribed under Companies (Indian Accounting Standards) Rules, 2015.

41 Corporate Social Responsibility Expenditure

As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. During
the year, the Company was required to spend INR 13.75 Lakhs (March 31, 2024 : INR 9.63 Lakhs)for as per the provisions of Section 135 of
the Companies Act, 2013.

The CSR activities of the Company are generally carried out through the registered charitable organisations. These organisations carry out the
CSR activities as specified in Schedule VII of the Companies Act, 2013 on behalf of the Company. During the year, the Company has
contributed INR 14.00 Lakhs (March 31, 2024 : INR 10 Lakhs) out of which, INR 0.25 Lakhs (March 31, 2024 : INR 0.37 Lakhs)are available
for set off in succeeding financial years.

42 Exceptional Items

During the first quarter of FY 2024-25, a cyclone caused damage to certain sections of the companyâs fabric processing unit and
some plant and machinery. The company promptly initiated an insurance claim to mitigate the financial impact of the event.
Following a detailed assessment, the insurance company approved and disbursed a claim amounting to ^109.86 lakhs. This amount
has been accounted for under "Exceptional Items" in the standalone financial statements.

43 Audit Trail

The Company uses accounting software that includes an audit trail (edit log) feature, which has been operational throughout the
year for all relevant transactions recorded in the accounting software. However, the audit trail feature was not enabled for certain
direct changes to the data made by specific users with specific privileged access rights to the ERP application and the underlying
SQL Server database. Despite this, there were no instances noted where the audit trail feature was tampered with.

Currently, the audit log is activated at the application level, and privileged access to the SQL Server database remains restricted to a
limited users who require this access for database maintenance and administration. All features of the software are rights-based,
with specific rights allocated to specific users according to their needs.

44 Recent Pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. DurinMinistry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2025,
MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have any significant impact in its financial statements.

45 The Company do not have any transaction to report against the following disclosure requirements as notified by MCA pursuant to amendment to
Schedule III:

1. Title deeds of immovable property not in the name of the Company

2. Crypto Currency or Virtual Currency

3. Benami Property held under Benami Transactions (Prohibition) Act, 1988 (45 of 1988)

4. Registration of charges or satisfaction with Registrar of Companies

5. Transaction with Struck off Companies

6. Related to Borrowing of Funds:

i. Borrowing obtained on the basis of Security of Current Assets

ii. Wilful defaulter

iii. Utilization of borrowed fund and share premium

iv. Discrepancy in utilization of borrowings

46 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ) with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The
Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or
indirectly lend or invest in other persons or entities identified by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

47 Approval of financial statements

The financial statements were approved for issue by the board of directors on May 21, 2025.

48 Events occurring after the Balance sheet Date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements
to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of May 21,
2025 there are no subsequent events to be recognized or reported that are not already disclosed.

49 Previous yearâs figures have been regrouped and rearranged wherever necessary to confer to the current year''s presentation.

For Dharmesh Parikh & Co LLP For and on behalf of the Board of Directors of

Chartered Accountants Globe Textiles (India) Limited

(Firm Registration No. - 112054W/W100725)

Harsh Parikh Bhavik Parikh Nilay Vora Bhavin Parikh

Partner Managing Director Whole Time Director Chief Financial

(Membership No. - 194284) DIN : 00038223 DIN : 02158990 Officer

Monali Maheshwari

Company Secretary
M. No : 53530

Place : Ahmedabad Place : Ahmedabad

DATE: 21/05/2025 DATE: 21/05/2025

Mar 31, 2024

J Provisions and contingent liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are not recognised but are disclosed in the notes where an inflow of economic benefits is probable.

K Leases: Right-of-use assets and Lease liabilities

i) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion ofinterest and reduced for the lease payments made. In addition, the carrying amount oflease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Companyâs net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

L Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. Cash and cash equivalents for the purpose of Statement of Cash Flow comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less.

M Earning per share

Basic earnings per share is computed by dividing the profit / (loss) for the period attributable to equity share holder by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) for the period attributable to Equity Share holders and the weighted average number of shares outstanding during the year are adjusted for effects of all dilutive potential equity shares.

N Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the years in which the Company recognises as expenses the related costs for which the grants are intended to compensate or when performance obligations are met.

Government grants, whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets and nonmonetary grants are recognised and disclosed as âdeferred incomeâ under non-current liability in the Balance Sheet and transferred to the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this favourable interest is treated as a government grant. The loan or assistance is initially recognised at fair value and the government grant is measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and recognised to the income statement immediately on fulfilment of the performance obligations. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

O Segment Reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the companyâs Chief Operating Decision Maker (âCODMâ) to make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS 108 - Operating Segments, the CODM evaluates the Companyâs performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

P Cash flow statement

Cash flows are reported using the indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operating, investing and financing activities of the Company are segregated based upon the available information.

Q Expenditure

Expenses are net of taxes recoverable, where applicable.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.

Financial assets and financial liabilities measured at fair value in the Balance Sheet are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: unobservable inputs for the asset or liability.

Fair value of the Companyâs financial assets and financial liabilities that are measured at fair value on a recurring basis.

(a) The Company uses the following hierarchy for determining and/or disclosing the fair value of financial assets by valuation techniques: (b) Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation oftheir fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs board of directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.

The Company is primarily exposed to risks resulting from fluctuation in market risk, credit risk and liquidity risk, which may adversely impact the fair value of its financial instruments.

(a) Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Trade receivables

The Company primarily collects consideration in advance for export of goods and services to be provided to the customer. As a result, the Company is exposed to reasonable credit risk in respect to domestic trade receivables.

The impairment is based on expected credit loss model considering the historical data and financial position of individual customer at each reporting period. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 8.

The Company does not hold any collateral as security. The Company has low concentration of risk with respect to trade receivables, as its customers are widely spread and belong to diversified markets.

(ii) Cash and cash equivalents, bank deposits and Security Deposits

The Company maintains its cash and cash equivalents and bank deposits with reputed banks and financial institutions. The credit risk on these instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The Company monitors the credit rating of the counterparties on regular basis. These instruments carry very minimal credit risk based on the financial position of parties and Companyâs historical experience of dealing with the parties.

(b) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types ofrisk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include foreign currency receivables, deposits, investments in mutual funds.

Market risk exposures are measured using sensitivity analysis. There has been no change in the measurement and management of the Companyâs exposure to market risks.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Exposure to foreign currency risk is very limited. The Company has taken hedging instruments by way of forward contracts to hedge the foreign currency exposure in respect of trade receivables, and as far as trade payables are concerned, the Companyâs unhedged foreign currency exposure on account of foreign currency denominated payable as at March 31, 2024 is as follow:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a mixed portfolio of fixed and variable rate loans and borrowings.

The sensitivity analysis have been carried out based on the exposure to interest rates for instruments not hedged against interest rate fluctuation at the end of the reporting period. The said analysis has been carried out on the amount of floating rate long term liabilities outstanding at the end of the reporting period. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

In case of fluctuation in interest rates by 50 basis points on the exposure on borrowing of Rs. 6,094.78 Lakhs as on March 31, 2024 (Rs.9,213.22 Lakhs as on March 31, 2023) and if all other variables were held constant, the Company''s profit or loss for the year would increase or decrease as follows :

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.

During the year, the Company has been regular in repayment of principal and interest on borrowings on or before due dates. The Company did not have defaults of principal and interest as on reporting date.

Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The Company primarily purchases its raw materials in the open market from third parties. The Company is therefore subject to fluctuations in prices for the purchase of Fabric. The Company purchased substantially all of its fabric requirements from third parties in the open market during the year ended March 31, 2024.

The following table details the Companyâs sensitivity to a 0.5% movement in the input price of Fabric/ Yarn. The sensitivity analysis includes only 0.5% change in commodity prices for quantity sold or consumed during the year, with all other variables held constant. A positive number below indicates an increase in profit or equity where the commodity prices increase by 0.5%. For a 0.5% reduction in commodity prices, there would be a comparable impact on profit or equity, and the balances below would be negative.

40 The Company uses accounting software that includes an audit trail (edit log) feature, which has been operational throughout the year for all relevant transactions recorded in the accounting software. However, the audit trail feature was not enabled for certain direct changes to the data made by specific users with specific privileged access rights to the ERP application and the underlying SQL Server database. Despite this, there were no instances noted where the audit trail feature was tampered with.

Currently, the audit log is activated at the application level, and privileged access to the SQL Server database remains restricted to a limited users who require this access for database maintenance and administration. All features of the software are rights-based, with specific rights allocated to specific users according to their needs.

41 Recent Pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company.

The Company do not have any transaction to report against the following disclosure requirements as notified by MCA pursuant to amendment to Schedule III:

1. Title deeds of immovable property not in the name of the Company

2. Crypto Currency or Virtual Currency

3. Benami Property held under Benami Transactions (Prohibition) Act, 1988 (45 of 1988)

4. Registration of charges or satisfaction with Registrar of Companies

5. Transaction with Struck off Companies

6. Related to Borrowing of Funds:

i. Borrowing obtained on the basis of Security of Current Assets

ii. Wilful defaulter

iii. Utilization of borrowed fund and share premium

iv. Discrepancy in utilization of borrowings

42 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43 Events occurring after the Balance sheet Date

On April 24, 2024, the Company has acquired 70% stake in Globe Denwash Private Limited, a company specialized in garment washing, finishing, and manufacturing. This strategic acquisition enables company to achieve vertical integration, enhancing both operational efficiency and product quality. Additionally, this move ensures the group''s facility is compliant with Zero Liquid Discharge (ZLD) and Zero Discharge of Hazardous Chemicals (ZDHC) standards, demonstrating a strong commitment to environmental sustainability.

44 Approval of financial statements

The financial statements were approved for issue by the board of directors on May 24, 2024.

45 Previous yearâs figures have been regrouped and rearranged wherever necessary to confer to the current year''s presentation.

For SHAH DHANDHARIA & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants

(Firm Registration No. - 118707W/W100724)

Karan Amlani Bhavik Parikh Nilay Vora Bhavin Parikh

Partner Managing Director Whole Time Director Chief Financial

(Membership No. - 193557) DIN : 00038223 DIN : 02158990 Officer

Faruk Diwan

Company Secretary M. No : 41911

Place : Ahmedabad Place : Ahmedabad

DATE: 24/05/2024 DATE: 24/05/2024

Mar 31, 2023

J Provisions and contingent liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are not recognised but are disclosed in the notes where an inflow of economic benefits is probable.

i) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Companyâs net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

L Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. Cash and cash equivalents for the purpose of Statement of Cash Flow comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less.

M Earning per share

Basic earnings per share is computed by dividing the profit / (loss) for the period attributable to equity share holder by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) for the period attributable to Equity Share holders and the weighted average number of shares outstanding during the year are adjusted for effects of all dilutive potential equity shares.

N Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the years in which the Company recognises as expenses the related costs for which the grants are intended to compensate or when performance obligations are met.

Government grants, whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets and nonmonetary grants are recognised and disclosed as âdeferred incomeâ under non-current liability in the Balance Sheet and transferred to the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this favourable interest is treated as a government grant. The loan or assistance is initially recognised at fair value and the government grant is measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and recognised to the income statement immediately on fulfillment of the performance obligations. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

O Segment Reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the companyâs Chief Operating Decision Maker (âCODMâ) to make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS 108 - Operating Segments, the CODM evaluates the Companyâs performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

P Cash flow statement

Cash flows are reported using the indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operating, investing and financing activities of the Company are segregated based upon the available information.

Q Expenditure

Expenses are net of taxes recoverable, where applicable.

(ii) Rights, preferences and restrictions attached to Equity shares

The Company has only one class of equity shares having a par value of Rs.2/- per share (PY Rs.2/- per share). Each shareholder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

31 Financial Risk Management and Objective

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs board of directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.

The Company is primarily exposed to risks resulting from fluctuation in market risk, credit risk and liquidity risk, which may adversely impact the fan-value of its financial instruments.

(a) Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Trade receivables

(ii) Cash and cash equivalents, bank deposits and Security Deposits

The Company maintains its cash and cash equivalents and bank deposits with reputed banks and financial institutions. The credit risk on these instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The Company monitors the credit rating of the counterparties on regular basis. These instruments carry very minimal credit risk based on the financial position of parties and Companyâs historical experience of dealing with the parties.

(b) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include foreign currency receivables, deposits, investments in mutual funds.

Market risk exposures are measured using sensitivity analysis. There has been no change in the measurement and management of the Companyâs exposure to market risks.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Exposure to foreign currency risk is very limited. The Company has taken hedging instruments by way of forward contracts to hedge the foreign currency exposure in respect of trade receivables, and as far as trade payables are concerned, the Companyâs unhedged foreign currency exposure on account of foreign currency denominated payable as at March 31,2023 is as follow:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a mixed portfolio of fixed and variable rate loans and borrowings.

The sensitivity analysis have been carried out based on the exposure to interest rates for instruments not hedged against interest rate fluctuation at the end of the reporting period. The said analysis has been carried out on the amount of floating rate long term liabilities outstanding at the end of the reporting period. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

In case of fluctuation in interest rates by 50 basis points on the exposure on borrowing of Rs. 9,213.22 Lakhs as on March 31, 2023 (Rs.8,661.36 Lakhs as on March 31,2022) and if all other variables were held constant, the Company''s profit or loss for the year would increase or decrease as follows :

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.

During the year, the Company has been regular in repayment of principal and interest on borrowings on or before due dates. The Company did not have defaults of principal and interest as on reporting date.

Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(d) Commodity Price Risk Management

The following table details the Companyâs sensitivity to a 0.5% movement in the input price of Fabric/ Yam. The sensitivity analysis includes only 0.5% change in commodity prices for quantity sold or consumed during the year, with all other variables held constant A positive number below indicates an increase in profit or equity where the commodity prices increase by 0.5%. For a 0.5% reduction in commodity prices, there would be a comparable impact on profit or equity, and the balances below would be negative.

40 Recent Pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 31st March, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 1st April, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 3 Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 8 3 Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are ââmonetary amounts in financial statements that are subject to measurement uncertaintyââ. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

41 The Company do not have any transaction to report against the following disclosure requirements as notified by MCA pursuant to amendment to Schedule III:

1. Title deeds of immovable property not in the name of the Company

2. Crypto Currency or Virtual Currency

3. Benami Property held under Benami Transactions (Prohibition) Act, 1988 (45 of 1988)

4. Registration of charges or satisfaction with Registrar of Companies

5. Transaction with Struck off Companies

6. Related to Borrowing of Funds:

i. Borrowing obtained on the basis of Security of Current Assets

ii. Willful defaulter

iii. Utilization of borrowed fund and share premium

iv. Discrepancy in utilization of borrowings

43 Events occurring after the Balance sheet Date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. There are no subsequent events to be recognized or reported that are not already disclosed.

44 Pursuant to the Business Transfer Agreement dated March 31, 2022, the Company has acquired the existing manufacturing unit of M/s. Vivaa Tradecom Private Limited (âVTPLâ) in a consideration of INR 2643.00 Lakhs. VTPL is engaged in the business of manufacturing/job work of garments and processing of fabrics. Post-acquisition, the Company has enhanced garments stitching capacity as well as its own process house.

45 Approval of financial statements

The financial statements were approved for issue by the board of directors on May 26, 2023.

46 Previous yearâs figures have been regrouped and rearranged wherever necessary to confer to the current year''s presentation.

For SHAH DHANDHARIA & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants

(Firm Registration No. - 118707W/W100724)

Karan Amlani Bhavik Parikh Nilay Vora Bhavin Parikh

Partner Managing Director Whole Time Director Chief Financial

(Membership No. - 193557) DIN : 00038223 DIN : 02158990 Officer

Faruk Diwan

Company Secretary M. No : 41911

Place : Ahmedabad Place : Ahmedabad

DATE: 26/05/2023 DATE: 26/05/2023

Mar 31, 2018

Note 1: CORPORATE INFORMATION

Globe Textiles (India) Limited having CIN: L65910GJ1995PLC027673 originally incorporated as a private limited company under the provisions of the Companies Act, 1956 and is domiciled in India. The company is based in Ahmedabad and is primarily involved in trading and manufacturing of textile products.

a) Terms/ Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs 10/- per share and each holder of the Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of Interim dividend.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of shares held by the shareholders. "

c) Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates - NIL

d) Bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

a) Vehicle Loan is of Rs 78,41,000/- repayable in 60 equal monthly installments of Rs. 1,60,908/- each including interest, from 5th March, 2017. The loan is secured by hypothecation of vehicle of the company.

b) The term loan is to be repaid by 48 equal monthly installments of each Rs 6,44,699, Rs. 4,40,302, Rs. 6,03,432 & Rs. 2,08,333 respectively. The monthly interest charged in account, during the moratorium and repayment period, will be serviced seprately. The loan is secured by hypothecation of all movable and immovable assets located at the SEZ Unit of the company. The loan carries an interest rate of Base Rate 1.50%.

c) The loan from bank is further secured by collateral securities given in the form of Equitable mortagage of Residential Flat held by Mrs. Shardhhaben B. Parikh & the additional Equitable Mortagage of Immovable Property held by The Company named "Aditya Green City Private Limited.

b) In accordance with âAccounting Standard 22â, the Deferred Tax liability of Rs. 37,58,512 /- (Previous year deferred tax liability Rs. 6,83,975 /-) for the year has been recognised in the Statement of Profit & Loss.

a) Secured Loan from bank includes cash credit and packing credit. It is secured against all trade receivables and stock. Cash credit and packing credit are repayable on demand and carry interest @ Base Rate 1.75% and Base Rate 0.25% respectively.

b) For details of Security Given Refer Note-5

c) Unsecured loan from shareholders and their relatives are interest free and are repayable on demand.

a) The Company has circulated letters to all its suppliers requesting them to confirm whether they are covered under the Micro, Small and Medium Enterprises Act, 2006 (âMSMEDâ). However from the majority of the suppliers these confirmations are still awaited. Hence disclosure relating to amount unpaid as at the yearend together with interest paid/payable as required under the said act has not been made.

a) Provision for taxation for the year has been made after considering allowance, claims and relief available to the Company as considered and perceived by the management.

b) Some taxes related assessments are pending against the Company. Potential liabilities, if any, have been adequately provided for, and the management does not estimate any incremental liability in respect of the legal proceedings.

NOTE 2: EARNINGS PER SHARE (EPS)

(a) The following reflects the profit and share data used in the basic and diluted EPS computations:

b) The Company does not have any outstanding dilutive potential equity shares. Consequently the basic and diluted earnings per share of the Company remain the same.

NOTE 3: RELATED PARTY DISCLOSURES

a) Related Parties with whom transactions have taken place during the year:

NOTE 4: OTHER DISCLOSURES

a) Sundry Creditors, Receivables and Loans and Advances include certain items for which confirmations are yet to be received. Provision for doubtful debts, if any, in respect of above and the consequential adjustments, arising out of reconciliation will be made at the appropriate time.

b) In the opinion of the Management and to the best of their knowledge and belief the value under the head of Current and Non Current Assets (other than fixed assets and non current investments) are approximately of the value stated, if realised in ordinary course of business, except unless stated otherwise. The provision for all the known liabilities is adequate and not in excess of amount considered reasonably necessary.

c) Contingent liabilities not provided for:

NOTE 5: SEGMENT REPORTING:

i) Primary Segment

In accordance with Accounting Standard 17 "Segment Reportingâ as prescribed under Companies (Accounting Standards) Rules, 2006 (as amended), the company has determined its business segment as Textile Trading and Manufacturing. Since, there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as reflected in the financial statements.

ii) Secondary Segment

Secondary segment reporting is based on the geographical location of customers. Company has its operations in India and outside India.

NOTE 6: PREVIOUS YEAR FIGURES

Previous yearâs figures have been regrouped wherever necessary to confirm to this yearâs classification.

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